Slide 1: North Energy Q4 2017
North Energy Q4 2017 Growing investment portfolio 15 February 2017 CEO Knut Sæberg
Slide 2: Important information
Important information This presentation and its appendices (together the “Presentation”) have been prepared and delivered by North Energy ASA (“North Energy” or the “Company”). The Presentation is prepared for information purposes only, and is not to be used for any other purpose. The Presentation d
Slide 3: Agenda
Agenda Q4 highlights and subsequent events Operational update Financial update Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no
Slide 4: Q4 highlights and subsequent events
Q4 highlights and subsequent events Liquidation of North E&P awaiting tax settlement Decision in Q3 to discontinue the petroleum activities on NCS Tax return and request for early settlement submitted in October No indications from tax office on timing of early settlement Growing investmen
Slide 5: Business model transition throughout 2017
Business model transition throughout 2017 Q1 2017 Distribution of dividend following a successful turnaround Becomes main shareholder of Reach Subsea with substantial influence and control Q2 2017 Divestment of IOX bonds resulting in a net profit of NOK 45 million Q3 2017 North E&P dis
Slide 6: Ambitions of North Energy – delivering attractive return based on active ownership
Ambitions of North Energy – delivering attractive return based on active ownership North Energy Finance Industry Competence Strategies Operations Analysis Execution Attractive return based on active ownership North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no
Slide 7: Agenda
Agenda Q2 highlights and subsequent events Operational update Financial update Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no
Slide 8: Liquidation of North E&P awaiting settlement
Liquidation of North E&P awaiting settlement Petroleum activities on NCS discontinued Decision made by the Board of Directors 7 July 2017 Effective as of Q4 2017 Tax return from North E&P filed in October Seeking early settlement of North E&P’s tax position NOK 201 million in tax loss ca
Slide 9: Estimated cash from liquidation of North E&P
Estimated cash from liquidation of North E&P 2016 tax refund received North E&P net cash position (MNOK) in November 2017 In line with estimates Fully utilised for downpayment of borrowings Final proceeds from Estimated cash from liquidation of North E&P MNOK liquidation of North E&P dependi
Slide 10: Growing investment portfolio
Growing investment portfolio Increased investment in Touchstone Exploration Onshore E&P activities in Trinidad North participated in December private placement North ownership > 10% Seabird Exploration (SBX) Shares from private placement delivered in Q4 North ownership of 8% Realisat
Slide 11: Reach Subsea: Well positioned for recovery
Reach Subsea: Well positioned for recovery Important recent contract announcements North’s position MNOK Statoil 3 year frame Book value as per 30.09.17 92.2 agreement, with first call- off for Havila Subsea Share of Reach result Q3 0.8 Investment in Q4 0.0 BP contract for Normand Impairment i
Slide 12: Touchstone Exploration
Touchstone Exploration Top independent onshore producer in Trinidad Average production of 1,448 boe/d in Q4 2017 Investment by North of 17 MNOK through 2017/18 Ownership of 11.4% Completed new 4 wells in 2017 Targeting 10 new wells and 18 recompletions in 2018 Expected production growt
Slide 13: Agenda
Agenda Q2 highlights and subsequent events Operational update Financial update Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no
Slide 14: Profit & Loss Q4 2017
Profit & Loss Q4 2017 (North Energy group consolidated) NOK Million Q4 2017 Q4 2016 FY 2017 FY 2016 Sales of services 1.0 2.1 3rd party Gain/loss from licence sale - 4.5 - 14.0 Exploration expenses 0.8 (11.6) (1.1) (29.1) Adjustment previously owned licences Payroll (0.9) 1.7 (18.2) (32.5) Other ope
Slide 15: Balance sheet as per Q4 2017
Balance sheet as per Q4 2017 NOK Million 31.12.2017 30.09.2017 31.12.2016 Comments on 31.12.2017 Assets Fixed assets 0.0 0.1 1.3 Deferred tax asset - 10.4 207.3 Investments 146.4 123.3 51.3 Shares, bonds, assoc. comp. Long term receivables 12.2 13.5 2.4 Short term receivables 235.8 306.3 73.3 LCF an
Slide 16: A comfortable cash position
A comfortable cash position Consolidated net cash position of NOK 61 million North Energy consolidated net cash position (MNOK) 62 Borrowings includes draw on DNB/SEB exploration facility and Pareto Bank overdraft Estimated net cash from E&P liquidation not included: NOK 201 million in tax l
Slide 17: A solid financial position
A solid financial position Net cash position as per 31 Dec NOK 61 million Investment portfolio as per 31 Dec NOK 157 million Tax losses carried forward from North E&P* NOK 201 million * The final proceeds received from North Energy financial position (MNOK) the liquidation of North E&P will de
Slide 18: Continued cost adaption
Continued cost adaption Full year 2017 vs 2016 cost reduction of 55% Cost increase in Q2 2017 due to provisions for closing of E&P «Negative» cost in some quarters due to reversal of provisions Exploration activities ceased during Q4 2017 North Energy ASA · post@northenergy.no · (+47) 22 01
Slide 19: Agenda
Agenda Q2 highlights and subsequent events Operational update Financial update Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no
Slide 20: Summary and outlook
Summary and outlook A comfortable financial position Continued cost adjustments and positive value development on investments contributes to positive results Growing investment portfolio and solid liquidity Liquidation of North E&P awaiting tax settlement Actively pursuing new market oppor
Slide 21: Q&A
Q&A North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no